Single Member LLCs: Are Your Assets Protected?
Single Member LLCs: Are Your Assets Protected? Although relatively new to the legal world compared to other forms of legal entities, Limited Liability Companies (LLC) have by far become the legal entity of choice for businesses. Data suggests that in recent years, more than 90% of new businesses started as an LLC. Some of the largest companies in the world have converted or re-established from corporations to LLCs. Well-known companies such as Apple, IBM, Nike, and many others are structured as an LLC. For an individual starting a business, a single member LLC (SMLLC) is most often chosen. In the past, legal entities really were not geared towards having a single owner. Partnerships consisted of multiple individuals. Corporations had multiple shareholders. So, having a legal entity that consists of one owner — at least as much as it occurs today with SMLLCs — presents a different landscape. I often get asked how much an SMLLC offers in the line of protection....